Staff Reporter

Zimbabwe continues to experience a decline in the inflation rate since August 2022 to date.

The Zimbabwe National Statistics Agency (ZIMSTAT) Director General,Taguma Mahonde revealed this yesterday, while stating that the annual inflation rate for March had dropped to 87.6% from 92.3% in February this year.

“The year-on-year inflation rate for the month of March 2023 as measured by the All-Items Consumer Price Index (CPI) was 87.6%, this means that prices as measured by the Consumer Price Index, increased by an average of 87.6% between March 2022 and March 2023.

“The month on month rate in March 2023 was 0.1% gaining 1.7% points on the February rate of minus 1.6%,” said Mahonde.

Mahonde cited social services such as health as key drivers of inflation for March.

“The key drivers were social services and elements such as health and education, there was, however, stability in inflation,” he said.

Inflation refers to the rate at which prices are increasing, while a fall in inflation does not, however, mean prices are decreasing, but reflects the slow pace in price adjustments.

Before the new calculation method, inflation used to be measured using the local currency only. The new calculation formula announced by the Minister of Finance and Economic Development, Professor Mthuli Ncube under Statutory Instrument 27/2023, states that the “rate of inflation” going forward refers to the general increase in price levels of goods and services measured as a weighted average based on the use of local currency and US Dollar over a given period of time.